Bank of England Stablecoin Caps: What It Means for Crypto Savers and Self-Custody
The Bank of England has proposed new limits on stablecoin ownership. Here's what it means for crypto holders, why it's controversial, and how to prove your stablecoin balance - without giving up control.
As crypto adoption accelerates, regulators are scrambling to keep pace. The latest? A proposal from the Bank of England to cap how much stablecoin individuals and businesses can hold.
For anyone using crypto to save, spend, or secure their future, the implications could be significant.
Here’s what the proposed cap means, why it matters, and how tools like Accredifi can help crypto holders prove (and protect) what they own - without giving up custody.
What’s Being Proposed?
The Bank of England is exploring limits on “systemic stablecoins” - those widely used for payments in the UK. The suggested caps:
- Individuals: Between £10,000 and £20,000
- Businesses: Around £10 million
These limits are being considered to reduce the risk that stablecoins might undermine traditional bank deposits or the broader monetary system.
“A hard cap on stablecoin ownership could create a two-tiered system - where crypto savers are punished for leaving the fiat system.”
Why It’s Controversial
1. Difficult to Enforce
Crypto wallets are pseudonymous, distributed, and borderless. Caps based on wallet balances would be:
- Hard to track without full surveillance
- Easy to circumvent by using multiple wallets
2. Disadvantages UK Users
These rules don’t apply to most global jurisdictions. This could:
- Drive crypto activity offshore
- Make the UK less competitive in fintech
3. Stifles Legitimate Use Cases
Many users rely on stablecoins for:
- Holding a mortgage deposit (see: Fiat Is Failing)
- Saving outside inflationary currencies
- Getting paid in crypto (see: Crypto as Proof of Income)
An arbitrary cap doesn’t distinguish between speculation and legitimate savings.
What It Means for Crypto Holders
Even if the proposal changes - or never becomes law - it signals a shift:
- Regulators want visibility into crypto activity
- Institutions will start asking for proof of funds
- Crypto holders will need to show stablecoin balances, ownership, and purpose
How to Prove Ownership (Without Giving Up Control)
Platforms like Accredifi allow users to:
- Connect their wallet (MetaMask, Ledger, etc.)
- Sign a message to verify ownership
- Generate a timestamped proof of their stablecoin balance
- Share a view-only link with a bank, letting agent, or lawyer
Your crypto stays in your wallet. You stay in control. But you gain a credible, verifiable record of your holdings.
Who This Affects
This proposal could impact:
- Crypto investors saving for property
- Businesses using stablecoins for payroll or reserves
- Self-employed workers earning in USDC or USDT
- Anyone trying to comply with AML/KYC in a decentralised world
If you fall into one of these categories, it’s time to start documenting your on-chain footprint.
Final Thoughts
Whether or not the Bank of England enforces caps, the direction of travel is clear: crypto is coming under greater regulatory scrutiny.
Smart crypto users will start preparing now - by proving what they own, when they owned it, and how they control it.
With Accredifi, you can:
- Generate real-time wallet proofs
- Verify ownership without sharing keys
- Show compliance without giving up custody
Explore how Accredifi helps you stay ahead of the rules - start your first verification today.
Related Articles
- Crypto Wallet Verification: How to Prove Ownership Without Risking Your Funds
- What Is Proof of Funds in Crypto? (And Why Screenshots Don't Cut It)
- Fiat Is Failing: How Crypto Savers Can Protect Mortgage Deposits – and Prove It
- Crypto as Proof of Income: Can Self-Custodied Assets Help You Qualify?
- AML and KYC in Crypto: What They Mean and Why They Matter
- MiCA Enforcement Begins: What It Means for Crypto Proof of Funds
Disclaimer: This article is for informational purposes only and does not constitute financial advice.